Walmart in talks to buy Vizio for more than $2 billion, WSJ reports
(Reuters) -Walmart is in talks to buy smart-television manufacturer Vizio for more than $2 billion, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.
Vizio shares were trading up 26% in afternoon trading. They briefly surged 36% to their highest since November 2022. Walmart (NYSE:WMT)'s shares were down about 1%.
The offer price would be a near 30% premium to Vizio's close on Monday.
Walmart has historically been Vizio's largest customer and Vizio is historically the largest television brand sold at Walmart by sales, the report said.
The move comes as Walmart increases its focus on Walmart Connect, its retail media advertising business, which allows brands to advertise on its Walmart.com and in-store assets such as digital displays, connected TVs and radio.
The business, which has been growing at a rapid clip since its launch in 2020, generated $3.19 billion in ad revenues in 2023, according to a report from Insider Intelligence.
The acquisition could potentially bolster Walmart's ability to sell ads on more devices.
Shares of Roku (NASDAQ:ROKU), which also sells smart TVs and streaming devices, fell about 9% in afternoon trading. Walmart entered into an exclusive deal with Roku in June 2022 to be the exclusive retailer to enable Roku viewers to purchase products fulfilled by Walmart directly on their Roku devices using a remote.
Vizio and Walmart did not immediately respond to requests for comment. Discussions between Walmart and Vizio are ongoing, and a deal may not eventually happen, the report added.
Read more on investing.com
